SIDCO - TAMILNADU SMALL INDUSTRIES DEVELOPMENT CORPORATION LIMITED

Tamilnadu Small Industries Development Corporation Limited (SIDCO) has been set up by the Govt. of Tamilnadu, with the specific objective of playing a catalytic role in the promotion and development of Small Scale Industries and to hasten the Industrial dispersal in backward and underdeveloped areas of the State.

The prime function of SIDCO is the formation of potential growth centers in various parts of Tamil Nadu. SIDCO commenced activities in 1971 with a comprehensive promotional Programme designed to stimulate entrepreneurship. Ever since, SIDCO has been synonymous with the growth of Small Scale Industries in Tamilnadu.

Owing to the Govt. of Tamilnadu's well-known generosity and progressive outlook, SIDCO has implemented a number of fiscal and other incentives on Government's behalf for the Small Scale Industries, particularly to stimulate self-employment among Technocrats. The main objective of SIDCO is to stimulate development of industries in the small scale sector with the following promotional activities.

Creation of Infrastructural Facilities & Provision of Worksheds
One of the major activities of SIDCO is creation of infrastructural facilities like roads, drainages, storm water drains, electrical lights, water supplies etc. in the Industrial Estates. Tamilnadu Small Industries Development Corporation Ltd., identifies and develops Industrial Estates at various locations and provides factory sheds of various sizes along with developed plots with all basic infrastructure facilities and allots them on easy installment basis/outright sale basis, specially to entrepreneurs who are willing to start Small Scale Industries. Before taking up construction of worksheds, the Corporation assesses the demand for industrial sheds and developed plots from prospective entrepreneurs through advertisement and also on conducting a demand survey. There is a network of 76 Industrial Estates in the State which are maintained by SIDCO. 32 of them were originally set up by Government and passed on to SIDCO. SIDCO itself has established 44 more Estates in various places covering rural and most backward areas.
The Corporation is implementing this scheme from the IV Five-Year Plan onwards.

Distribution of key / scarce raw materials
The Corporation's endeavor is to ensure that the small-scale units get their raw materials at competitive rate from its depots. It is also the policy of the Corporation to increase the coverage of basic raw materials in addition to opening more number of depots. SIDCO handles various scarce raw materials, depending on the requirements.

Marketing Assistance Scheme
Realising that efficient marketing support is essential for successful running of small scale units, assistance by way of marketing the products of small scale units is being rendered by the Corporation. The Corporation has taken up this scheme to assist SSI units to market their products at competitive rates without any working capital constraints. Under this scheme, the Corporation participates in the tenders floated by the State Government Departments. Sister concerns and DGS & D on behalf of the SSI units and obtains orders with advance payment. SIDCO envisages to execute orders worth of Rs. 500.00 lakhs for the year 1998-99. In order to enable the SSI units to tap market for their products, a number of Buyer-Seller meets are arranged by the Corporation at frequent intervals.

Export Marketing Assistance
In line with today's changing scenario, SIDCO is also taking up certain innovative and non-conventional initiatives for the promotion of Small Industries in the state. A new scheme has been inaugurated on 2-11-1998 for assisting the small and medium units to find export marketing. SIDCO, in collaboration with TANSTIA - FNF Service Centre, shall assist the units enrolled with SIDCO by developing web-sites for them and displaying their products on the web-sites and then marketing them effectively. This will render the much-needed institutional support for the prospective small scale exporters and SIDCO will act as a COMMON EXPORT MANAGER rendering a variety of services to market SSI products to the world.

SIDCO has also been participating in the India International Trade Fair being conducted at New Delhi every year for generating Export enquiries for the benefit of SSI units. It is proposed to take up the export activity in a wider scale since the SSI units can no longer depend on internal marketing alone and have to export their products for their growth.